Teradyne, Inc. (NASDAQ:TER – Get Free Report)’s stock price was down 4.3% during mid-day trading on Wednesday. The company traded as low as $404.80 and last traded at $411.78. 2,375,150 shares were traded during trading, a decline of 33% from the average daily volume of 3,547,054 shares. The stock had previously closed at $430.32.
Key Stories Impacting Teradyne
Here are the key news stories impacting Teradyne this week:
- Positive Sentiment: Teradyne introduced the Titan HP platform, which adds burn-in capabilities for advanced AI data-center devices. The system is designed to lower testing costs and factory-floor space requirements while accelerating customers’ time to market, potentially strengthening Teradyne’s position in AI-chip testing. Teradyne Introduces Titan HP Platform with Burn-In Capabilities for Advanced AI Data Center Devices
- Positive Sentiment: The company also enhanced its Magnum E2 memory test platform for advanced DRAM and high-speed NAND flash, supporting demand tied to AI infrastructure and next-generation memory. Teradyne Magnum E2 addresses advanced DRAM and high-speed NAND flash
- Positive Sentiment: Teradyne plans to collaborate with and invest in Bright Machines, pairing its robotics and semiconductor-test technologies with Bright Machines’ software-defined manufacturing platform. The agreement could expand Teradyne’s exposure to automated AI-infrastructure manufacturing. Teradyne invests in Bright Machines to bring robotics to AI infrastructure manufacturing
- Neutral Sentiment: Teradyne Robotics and Elite Robots settled a cobot-related dispute, removing a legal uncertainty, although the financial impact was not disclosed. Teradyne Robotics, Elite Robots settle cobot dispute
- Negative Sentiment: Investor focus is shifting to the upcoming third-quarter earnings release. Analysts anticipate strong triple-digit year-over-year EPS growth, but the high bar raises the risk of a negative reaction to weaker guidance or signs of margin pressure. What You Need to Know Ahead of Teradyne’s Earnings Release
- Negative Sentiment: Market commentary highlights concerns about Teradyne’s premium valuation, competition and potential margin pressure despite strong AI-driven memory-test growth. A report also questioned competitive dynamics involving Advantest, adding to caution around the stock’s rapid gains. Teradyne Gains 130% YTD: Should You Hold or Fold the Stock?
- Negative Sentiment: Cathie Wood’s reported sale of Teradyne shares may be adding modest investor-sentiment pressure, even though it does not change the company’s fundamentals. Cathie Wood Buys Archer Aviation and Joby Aviation Shares While Selling Teradyne
Analyst Ratings Changes
A number of research firms have recently weighed in on TER. The Goldman Sachs Group reiterated a “buy” rating and issued a $465.00 price target on shares of Teradyne in a research report on Tuesday, July 28th. Cantor Fitzgerald restated an “overweight” rating and set a $550.00 price objective on shares of Teradyne in a research note on Wednesday, July 29th. Weiss Ratings upgraded Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, September 29th. Evercore reissued an “outperform” rating and set a $420.00 target price on shares of Teradyne in a report on Thursday, July 30th. Finally, Zacks Research cut shares of Teradyne from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Eleven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Teradyne currently has an average rating of “Moderate Buy” and a consensus price target of $396.80.
Teradyne Trading Down 4.3%
The company has a market cap of $64.38 billion, a P/E ratio of 56.49, a price-to-earnings-growth ratio of 0.90 and a beta of 1.75. The company has a 50 day moving average price of $379.46 and a 200-day moving average price of $370.34.
Teradyne (NASDAQ:TER – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the firm posted $0.57 earnings per share. Teradyne’s revenue was up 103.9% compared to the same quarter last year. Equities analysts expect that Teradyne, Inc. will post 9.11 earnings per share for the current year.
Teradyne Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were issued a $0.13 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. Teradyne’s dividend payout ratio is 7.13%.
Insider Buying and Selling at Teradyne
In related news, CEO Gregory Smith sold 4,000 shares of Teradyne stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $337.83, for a total transaction of $1,351,320.00. Following the sale, the chief executive officer directly owned 108,495 shares of the company’s stock, valued at approximately $36,652,865.85. The trade was a 3.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.19% of the company’s stock.
Hedge Funds Weigh In On Teradyne
Several institutional investors and hedge funds have recently added to or reduced their stakes in TER. Central Pacific Bank Trust Division bought a new stake in shares of Teradyne during the third quarter worth $146,000. Silverleafe Capital Partners LLC acquired a new position in shares of Teradyne during the third quarter worth $969,000. Polaris Financial Partners bought a new position in shares of Teradyne in the 3rd quarter valued at $113,000. GoalVest Advisory LLC lifted its stake in shares of Teradyne by 7.9% in the 3rd quarter. GoalVest Advisory LLC now owns 8,890 shares of the company’s stock valued at $3,564,000 after acquiring an additional 654 shares during the last quarter. Finally, Versant Capital Management Inc boosted its holdings in shares of Teradyne by 3.4% during the 3rd quarter. Versant Capital Management Inc now owns 1,776 shares of the company’s stock valued at $712,000 after acquiring an additional 59 shares in the last quarter. Institutional investors own 99.77% of the company’s stock.
About Teradyne
Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.
Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.
Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.
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